All of the following are disadvantages of licensing EXCEPT:
A)the licensor reduces it potential profits gained from it.
B)the foreign country gains employment by having the product manufactured locally.
C)the licensor forgoes control of its product.
D)should the licensee prove to be a poor choice,the name or reputation of the company may be harmed.
E)the licensor may be creating its own competition.

Question

Quizplus · Accepted Answer

The option B is not a disadvantage, but rather an advantage of licensing, as it creates employment opportunities in foreign countries. The other options are disadvantages of licensing, such as reduced profits, loss of control, harm to reputation, and the creation of potential competition.

All of the Following Are Disadvantages of Licensing EXCEPT